COLUMBUS, Ind. — The rebalancing process in the U.S. freight market is being drawn out by reluctance to part with workers and significant private fleet capacity expansion, even as pressure on fleets worsened this month as diesel prices spiked, according to the latest release of the ACT Research Freight Forecast, U.S. Rate and Volume OUTLOOK report.
“Although seasonality remains loose and demand soft, spot market dynamics have begun to shift since the end of operations at Yellow on July 31. While this is a game-changer for LTL rates, so far, the truckload market is still loose enough for rates to be largely unaffected. We see the impact growing over time, along seasonal patterns,” said Tim Denoyer, ACT Research’s vice president and senior analyst.
The publicly traded for-hire fleets reduced their collective tractor count by 3% in 1H’23, but Class 8 tractor sales and production are still near maximum levels, adding considerably to the Class 8 tractor fleet.
Private fleets are still growing and pulling freight from the for-hire market.
“Class 8 orders will be very interesting over the next several months and, in our view, pivotal to setting the market tone for 2024,” Denoyer said.
Linda Garner-Bunch has been with The Trucker since 2020, picking up the reins as managing editor in 2022. Linda has nearly 40 years of experience in the publishing industry, covering topics from the trucking and automotive industry to employment, real estate, home decor, crafts, cooking, weddings, high school sports — you name it, she’s written about it. She is also an experienced photographer, designer and copy editor who has a heartfelt love for the trucking industry, from the driver’s seat to the C-suite.
